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Rusty mowers, Inc is expected to pay a dividend of $2.25 at the end of the year. The required rate of return is rs =

Rusty mowers, Inc is expected to pay a dividend of $2.25 at the end of the year. The required rate of return is rs = 8%, and the expected constant growth rate is g = -3.0% (i.e. negative 3%). What is its stocks value based on constant dividend growth model?

$31.15 $19.23

$20.45 $17.75

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